A young couple from Brisbane approached me regarding where to invest in Brisbane. It was their first investment property and they needed guidance. They simply had no idea of what and where to purchase. They had been looking at units to which I gave them the option to consider and newer house. The understanding for this type of strategy is simple. It is the land that appreciates in value and a house does not require you to pay body corp fees.
But the most important point is the risk associated with a unit purchase in Brisbane. We are expecting an over supply of units coming on to the market over the next few years, this will decrease demand which will then decrease returns on both future value and rental return.
The next option was to find a suitable property and as they were south siders I targeted these areas as like many people in Brisbane they were South Siders and did not know the Northern Suburbs which would have made them feel uncomfortable.
A 6 year old property in the suburb of Doolandella was our final choice with the major factor being the land size. All new land releases in the area were on 300 m2 block sizes which naturally means that these bigger land sizes will be in higher demand in the future.
The property itself had an asking price of $549,000, which was a fair price for the property but many indicators pointed to the agent wanting to move this fast. I felt we secure the property for $520,000, the offer was placed with a suitable story to justify the low offer which was accepted.